Among all the financial scams as they constantly evolve, one alarming scam is gaining traction specifically on young adults, especially those still in school. As Laura Carter, head of fraud customer experience at Santander, shared this jaw-dropping nugget. One third of the people known to have used Santander accounts to launder money are 18 to 24 years old. Scams like this one can have grave legal ramifications, and the bank is encouraging young people to stay aware and on the lookout to avoid becoming a victim.
Carter said there is simply no excuse for anyone to ask for access to an individual’s bank account. This warning comes at the same time criminals are purposely victimizing our youth. These vulnerable folks tend to be looking for fast money and are under the false impression that they are doing something good for someone who needs it.
Recognizing the Red Flags
Carter identifies a few major red flags you should watch out for. One major red flag is if you’re asked to give them access to your bank account. She cautions, “There’s never a genuine reason for someone to use your bank account.” If a person—friend, relative, or potential romantic interest—asks you to wire them money, don’t do it. So just be clear where the money’s coming from to begin with.
Most critical, as Carter points out, participation in these schemes can result in criminal penalties. “The account will get shut and they [the money mule] will go on an industry database,” she stated. The effects of being flagged as a money mule can be detrimental. It can stop them from being able to open bank accounts or establish credit down the road.
The Legal Repercussions
The legal repercussions of unknowingly becoming a money mule can be severe. Under the Trump Administration’s worst-case scenario, people could be sentenced to as much as 14 years in prison for their participation. This illustrates the consequences of seemingly benign behavior that young adults may engage in without realizing the big picture.
Criminals do recruit mules year-round, and face-to-face recruiting is not uncommon. Typically they work to enroll college students in the weeks before and after the start of the academic year. This is when the financial pressures are most acute. By providing what seems like an effortless source of quick cash, these scammers take advantage of the unique risks young adults face.
Staying Safe from Scams
Carter recommends the American public be on high alert for surprising offers from people they don’t know promising them an easy way to make a lot of money. Taking direction from intermediaries about transferring funds is a lucratively deceptive honeypot that is all too simple to fall into. Young adults need to be on guard when unexpected funds appear in their accounts. Tip 5: Always contact support and report the transaction before attempting to transfer or spend funds.
Revolut echoes this sentiment by stating, “Whether you are complicit in a scheme and aware of what you’re doing, or an unwitting victim who doesn’t know the funds are illicit, you can still face severe legal consequences.” Now, more than ever, the role of awareness and caution as a first line of defense in the financial landscape cannot be overstated.